Recently in chapter 11 Category
This one's not recession related, but it is interesting: Jolt Cola filed for bankruptcy protection after experiencing problems sourcing new packaging. Jolt ordered 90 million "23.5 ounce resealable cans" from a supplier but has received just 30 percent of its order. The lack of supply forced Jolt to make alternate accommodations, and the resulting moves created a capital crunch that the company doubts it can fix.
No word yet on whether this will have any impact on Jolt's operations, although the lack of packaging would suggest Jolt becomes harder to find in the coming months.
A pair of high-profile Manhattan dining institutions filed for bankruptcy in recent days. Café des Artistes, an Upper West Side classic, made its filing this week after closing its doors last month. The restaurant had been open since 1917 and is well known for its murals and protracted meals.
A few blocks away, Tavern on the Green filed for bankruptcy as well, although its current owner promises to continue operations until the end of the year. Unlike Café des Artistes, which has closed for good, Tavern's operating license has been sold to another operator, who takes over in 2010.
The pair are the latest casualties in a difficult year for restaurants; several notable high-end eateries, including La Goulue and Payard, closed in recent months. The Bloomberg article linked above notes New York's restaurant industry, an integral part of its social and economic infrastructure, has declined 11 percent this year.
The retail unit of Samsonite Luggage filed for Chapter 11 bankruptcy last week, with plans to rapidly close 84 stores. The move is designed to increase profitability by halving the number of existing retail outlets. Merchandise is to be liquidated this fall.
Samsonite expects no disruption of business beyond the proceedings and store closings. The company blamed the recession's impact on travel as the main driver of the bankruptcy filing.
Reader's Digest, the once beloved publication found on millions of newsstands and checkout carousels, is filing for bankruptcy protection. The private equity concern that bought Reader's Digest two years ago is looking to reduce its debt. The company has secured funding to continue operations, and the bankruptcy filing will not affect its extensive international business. Reader's Digest, like many print publications, has struggled with circulation and revenue issues for several years.
German fashion company Escada filed for bankruptcy protection after failing to secure financing. The company had planned on making moves to continue funding its operations. Reuters said the company is "throwing in the towel" and "admit[ting] defeat," which casts doubt on the company emerging from bankruptcy as an ongoing business. Escada had more than 400 worldwide locations.
Upscale makeup brand Paula Dorf filed for bankruptcy protection last week. The company claims the filing was strategic, but industry experts say the line has too many skus and not enough new, innovative items that spur growth.
Prestige beauty products saw a sales decline in 2008 and have experienced continued weakness this year.
Finlay Enterprises, the jeweler retailer behind such brands as Bailey Banks & Biddle and Carlyle, filed for bankruptcy protection. The company plans on selling its assets at auction, bringing an end to its current composition. Finlay, which dates to 1887, still has nearly 200 locations including department store installations.
Finlay announced a series of store closings in February, which proved to be insufficient in narrowing the company's losses.
In related news, Zale closed 118 locations in the past fiscal quarter, bringing its total closings to 191 this year as it tries to preserve its own profitability.
Fashion designer Mary Norton filed for bankruptcy last week, citing "harsh economic conditions." Mary Norton's stores, in Charleston, New York and Los Angeles, have all closed, a few weeks after holding extensive clearance sales. The company had also sold its fashions in an assortment of boutiques and at Saks Fifth Avenue.
Beleaguered southwestern grocer Bashas' filed for Chapter 11 bankruptcy protection Sunday night in an attempt to continue operations. The company announced 10 new store closings alongside the filing. Bashas' owns the Food City and AJ's Fine Foods chains in addition to its namesake, a total of 158 stores.
The U.S. unit of specialty retailer Crabtree & Evelyn filed for Chapter 11 bankruptcy this morning, citing economic conditions. The company, which sells popular soaps and other products, has 126 stores across the country. Crabtree & Evelyn plans to work on rent reductions at existing locations and will close an unspecified number of stores.
Two celebrity-focused jewelers fell victim to the recession this month.
First, Michael Beaudry, who is known for manufacturing and supplying jewelry to Hollywood stars, filed for bankruptcy June 4. Sister company Centerstone Diamonds filed for Chapter 11 on the same day. No information is available about the company's future plans.
Yesterday, Harry Dunay also filed for Chapter 11 bankruptcy, citing economic conditions. The business, which dates to 1965, sells its jewelry at high-end stores like Neiman Marcus as well as direct to celebrities. Harry Dunay plans on reorganizing the business and continuing operations.
Furniture retailer the Door Store filed for bankruptcy protection in late May. The Door Store, which was founded in Ohio in 1953, has had a drastic sales shift since the financial crisis began. High rents on large showrooms are being cited as the main cash flow concern. The company expects to fulfill all outstanding orders and continue operations.
Anchor Blue, a southwestern chain selling denim and other clothing, is closing and liquidating 46 stores. The closings are related to a bankruptcy filing from May (which somehow slipped past Eyes McGurk at Timely Demise). Anchor Blue had 177 stores before the closings; another 75 Most outlet stores were sold to Levi Strauss at the time of the Chapter 11 filing.